Bankruptcy is a federal matter — Congress was given the constitutional authority to create uniform bankruptcy laws throughout the United States, ensuring you cannot move around to seek more favorable outcomes in another district or state. As a neighbor to Central Islip, our Bohemia office is right next door to the U.S. Bankruptcy Court for the Eastern District of New York, Central Islip Division, which covers all bankruptcy petitions filed in Suffolk County. We handle three types of bankruptcy:
Chapter 7 (Liquidation): All of your nonexempt assets — typically including your home, vehicle, furniture, bank accounts, and jewelry — are liquidated, and the proceeds are distributed by a trustee in priority order among your creditors. Once the money is distributed, the rest of your qualifying debts are discharged (forgiven). Because bankruptcy is a tenet of American law, creditors accept the risk that a discharge is a possibility — which is why unsecured debts carry higher interest rates.
Chapter 13 (Wage-Earner Reorganization): If you are working and have steady income, your debts are consolidated into a court-supervised repayment plan over 3–5 years. If you successfully complete your plan, remaining dischargeable debts are forgiven — and you get to keep your home, vehicles, and assets.
Chapter 11 (Business Reorganization): Designed for business owners who don’t want to give up their business. You act as your own trustee, following the court’s orders and distributing profits to creditors accordingly. You get to keep your business assets and stay in business. The downside is significant compliance paperwork — having a bankruptcy attorney on your side greatly reduces stress and increases your chances of successful compliance.
